Superior Stability and Dividend Growth slide image

Superior Stability and Dividend Growth

REALTY INCOME Diligent Underwriting Process Results in Minimal Exposure to Retail Bankruptcies # Realty Income's strategy is to invest in clients with a non-discretionary, low price point, and / or service-oriented component to their business. TOTAL RETAILER BANKRUPTCIES SINCE 2017 38 Apparel 34 Casual Dining 19 Specialty Retailer er marmac 18 General Merchandise REALTY INCOME 113 of 154 U.S. retailer bankruptcies since 2017 are associated with companies lacking at least one of these characteristics. EXPOSURE AND STRATEGY Limited exposure to the industry; existing exposure is primarily with off-price retailers that have fared better. Immaterial exposure to bankruptcies in this sector. Top clients are large, national operators with strong access to capital that paid essentially all rent due through the duration of the pandemic. with clients selling Limited exposure to the industry, primarily with clients selling low price point goods. Exposure to clients selling non-discretionary and/or low price point goods. Immaterial exposure to bankruptcies in this industry. Top two US grocery clients (Kroger and Walmart) control >30% of the US grocery market share and have significant size, scale and access to capital to expand their omni-channel platforms. In the UK, Sainsbury's and Tesco are among the top three grocery operators. PHOTO CENTERE 08 8665336 3 Grocery Stores Sporting Goods Entertainment Health and Fitness Jewelry Accessories Consumer Electronics Other Retail Limited exposure to the industry, primarily with off-price retailers. DRIVE THRU Limited exposure to this industry and immaterial exposure to bankruptcies, as Realty Income has been proactively addressing its investment in this industry since 2016. AX DRIVE THRU Immaterial exposure to entertainment clients outside of the movie theaters, and minimal exposure to bankruptcies. Top two clients are large, national operators with strong scale and access to capital, one of which paid 100% of rent through the duration of the pandemic. Immaterial exposure to this industry. No exposure to bankruptcies. Immaterial exposure to a large, national operator with strong balance sheet and successful omni-channel platform. No exposure to bankruptcies. No exposure to retailers that filed bankruptcy. 40 PUL
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